Money is the blood of business. Without the constant flow of money, businesses simply cannot survive. There are many different business techniques for keeping the cash flowing for your company. Three important methods for keeping your business flowing with cash include bringing in new customers, staggering payment due dates for your clients and using accounts receivable financing from Universal Funding.
Work to Constantly Bring in New Customers
Although you may have some loyal customers, it’s difficult to constantly have cash coming into your business if you are not working to bring in new ones. Bringing in new customers means getting your face out in the public eye. This can be done through marketing campaigns, visiting potential clients in person, getting referral from current clients, and going to events such as trade shows. As long as you are continuously bringing in new customers, you can usually count on a steady flow of cash for your business.
Stagger Your Clients’ Due Dates
Keeping your business income steady may require a little creativity when it comes to receiving payments from your clients. Some businesses choose to stagger clients’ due dates so there is some cash coming in at all times of the month. This way, you are not necessarily hurting terribly if a client is late on a payment. You have to be careful about how you stagger payment dates, however, since this can sometimes lead to periods where you are waiting for customer payments before you can pay your own pending bills.
Consider Accounts Receivable Financing
Accounts receivable financing is the act of selling your unpaid customer invoices to a factoring company like Universal Funding for cash. It is not a loan, since you are simply selling an invoice. Your business gets cash quickly, and we collect payment from your customers in your stead. It is an easy way to keep the money flowing, even when your clients are late with their payments of you have arranged terms for payment that extend past 15 days.
Call Us Today
Your business needs money to survive, so good techniques for maintaining cash flow are important. If your business makes over three million dollars annually, contact Universal Funding to learn more about receivable financing. You can also fill out our online rate form for information.